Core Sector Growth Up 6.3 Per Cent In May; Output Of Electricity, Coal, Steel Rises
The growth of these core sectors, coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, was 5.2 per cent in May 2023
The eight key infrastructure sectors' growth rose by 6.3 per cent in May on healthy expansion in the production of coal, natural gas, and electricity, though the growth rate is lower than in April, according to official data released on Friday. The production of the eight sectors grew 6.7 per cent in April. The growth of these core sectors, coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity, was 5.2 per cent in May 2023. The official data showed that fertiliser, crude oil, and cement output recorded negative growth in May.
During April-May this fiscal, the output of these sectors was up 6.5 per cent against 4.9 per cent in the same period last fiscal. The production growth of coal, natural gas and electricity rose by 10.2 per cent, 7.5 per cent and 12.8 per cent, respectively, against 7.2 per cent, (-) 0.3 per cent and 0.8 per cent in May 2023.
The growth rate in the production of refinery products and steel slowed down to 0.5 per cent and 7.6 per cent during the month under review. The eight core sectors contribute 40.27 per cent to the country's Index of Industrial Production (IIP).
ICRA Chief Economist Aditi Nayar said that while the core sector growth sustained above 6 per cent for the fourth consecutive month, it eased slightly in May. A combination of factors, including the heatwave over parts of the country and the phased parliamentary elections could have curtailed activity and execution in some sectors, she added.
The summary of the Index of Eight Core Industries:
Cement: Cement production (weight: 5.37 per cent) declined by 0.8 per cent in May, 2024 over May, 2023. Its cumulative index declined by 0.6 per cent during April to May, 2024-25 over corresponding period of the previous year.
Coal: Coal production (weight: 10.33 per cent) increased by 10.2 per cent in May, 2024 over May, 2023. Its cumulative index increased by 8.9 per cent during April to May, 2024-25 over corresponding period of the previous year.
Crude Oil: Crude Oil production (weight: 8.98 per cent) declined by 1.1 per cent in May, 2024 over May, 2023. Its cumulative index increased by 0.2 per cent during April-May, 2024-25 over corresponding period of the previous year.
Electricity: Electricity generation (weight: 19.85 per cent) increased by 12.8 per cent in May, 2024 over May, 2023. Its cumulative index increased by 11.6 per cent during April to May, 2024-25 over corresponding period of the previous year.
Fertilizers: Fertilizer production (weight: 2.63 per cent) declined by 1.7 per cent in May, 2024 over May, 2023. Its cumulative index declined by 1.2 per cent during April to May, 2024-25 over corresponding period of the previous year.
Natural Gas: Natural Gas production (weight: 6.88 per cent) increased by 7.5 per cent in May, 2024 over May, 2023. Its cumulative index increased by 8.0 per cent during April to May, 2024-25 over corresponding period of the previous year.
Petroleum Refinery Products: Petroleum Refinery production (weight: 28.04 per cent) increased by 0.5 per cent in May, 2024 over May, 2023. Its cumulative index increased by 2.2 per cent during April to May, 2024-25 over corresponding period of the previous year.
Steel: Steel production (weight: 17.92 per cent) increased by 7.6 per cent in May, 2024 over May, 2023. Its cumulative index increased by 8.2 per cent during April to May, 2024-25 over corresponding period of the previous year.
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